AOL's Not Well At Time Warner
May 1, 2008 at 5:32 AM (PT)
While TIME WARNER is unloading its cable business, its troubled AOL division continues to weigh down the media giant, reports THE NEW YORK POST. The company reported first-quarter results yesterday that were largely in line with estimates and announced plans to spin off its majority-owned cable unit, TIME WARNER CABLE.
Overall, TIME WARNER posted net income of $771 million, or 21 cents a share, down 36% from $1.2 billion, or 31 cents a share, a year earlier. Revenue climbed 2%, to $11.4 billion.
But it was hard for investors to overlook the problems at AOL, a major player in streaming music and radio, where revenue fell 23% in the first quarter. TIME WARNER is staking AOL's future on advertising as its traditional dial-up access business dwindles.
In the first quarter, however, ad growth hit a wall, rising just 1%. The worst news was an 18% drop in display ad sales on AOL-owned properties, such as AOL.COM, TMZ and MAPQUEST.